Tag: cost overrun

Hoxton Olympic Hand Over: On Sunday 24th August 2008, fifteen years ago the Olympics were officially handed over from Beijing to London. To mark this, events were arranged in Hoxton, part of Hackney, one of the three London Boroughs in which the main Olympic site was being developed.

Hackney Council hoped that they would gain some money for regeneration from the huge Olympic spending, though it is difficult to find much evidence that it did in any way improve the borough. They had arranged what turned out to be a very boring event in Shoreditch Park with a giant TV screen showing events from Beijing and some performances and speeches. It was very poorly attended – probably only by a few council officials and families of the local kids who ran a few races or took part in the displays and singing. I took a few pictures – including one showing both the Union Jacks being waved in the park, but soon left for the more interesting local event – a 1948 Street party – in Hoxton Street.

The previous London Olympics in 1948 were arranged on a shore-string budget when the whole country was still under rationing and still recovering from the war. They made use of existing facilities and were truly an ‘Austerity Olympics’. But they were also a very successful event.

Back then the athletes were truly amateurs, taking time off from work to compete and training outside their work hours. Now, particularly since lottery funding it is a massively professional affair, with billions going into Olympic sports, and little if any of the original Olympic ideals remain.

Studies published in 2016 reveal that London 2012 was the most expensive Summer Olympics in history, costing $15 billion, overrunning its original budget by 76%. The organisers doubled the estimate after winning the bid, then claimed that they had come in under budget in what the study describes as “deliberate misinformation of the public about cost and cost overrun” saying it “treads a fine line between spin and outright lying“.

But the figures are actually a huge underestimate of the actual cost, as they exclude “indirect capital costs, such as the money spent on upgrading the local transport infrastructure”, much of which is inappropriate to current needs or the future development of the area.

In contrast, the total spending on the 1948 Olympics was £732,268, equivalent in 2012 allowing for inflation to around £16 million, only just over one thousandth of the cost of London 2012. And the 1948 cost was a little under budget and was more than paid for by ticket sales – there was a profit of over £29,000.

Hoxton had decided to put on a ‘1948 Street Party’ in the area of Hoxton St where the market takes place, and there were shops, museums and various local organisations taking part and putting on events and displays.

Back in 2008 I wrote:

I’d had a very nice cup of tea served in 1948 style china by a “nippy”, and in the street were tea parties (with free cakes) and displays of boxing, jitterbugging and various objects from the 1940s kitchen (almost all of which we still use here, including a pastry blender – and no, it isn’t used to make bread.) Pearlies came in force and had a sing-song round the joanna.

Of course there was a bar, and there was also a little welcome madness in the section of road where the Hackney Austerity Olympics was taking place. It was of course highly appropriate, as the last Olympic Games held here were very much run on a shoe-string in 1948.

There was dancing on the street and everyone was having a good time. Including the ‘Free Hackney Movement’ Space Hijackers who arrived in what they call a tank to celebrate the handover of the protest torch for the Olympics from the Free Tibet protesters to Free Hackney.

The Free Hackney protest sees London 2012 as a great opportunity for property developers to rip us off and make obscene profits building luxury flats in the area, while at the same time restricting public access, closing down the existing free facilities and demolishing social housing and local businesses. So far its hard to argue against their case given the closure of local sports facilities including the closure of the Temple Mills cycle circuit and the removal of the Manor Gardens allotments and the wholesale clearance of small local firms which were based on Stratford Marsh.

There are a few locally based companies that have done well from their move, but more that have moved outside the area or closed down, with a loss of jobs in the area. There has also been considerable development of tall blocks of flats, but mainly for private sale or student accommodation which has done little if anything for the huge housing problems faced by local residents who want to remain in Hackney, Tower Hamlets or Newham.

Of course the London 2012 Olympics did give pleasure to many in the UK and around the world who watched the events, including the relatively few who bought tickets and watched them live. But any overall economic benefit for the UK – as claimed by the government – is debatable and given the extreme cost in any case marginal. Personally I find the media induced hysteria generated by the media around sporting events such as this objectionable and feel it is bad for the moral health of the country which needs a greater emphasis on the social and less on individual achievements of a tiny minority.

More at
Free Hackney Movement
Hoxton Handover – 1948 Street party